What's a W-8BEN tax form?
A W-8BEN is a tax form required by the US Internal Revenue Service (IRS) for foreign individuals to establish their foreign status for tax purposes in the United States.
Why do I need to submit a W-8BEN tax form?
We require you to submit a W-8BEN tax form, to:
Certify your foreign status for tax purposes; and
Determine the withholding tax rate that applies to your US source income (such as dividend payments).
The form will be filled and filed on your behalf by our brokerage provider when you open a US Investing account with us.
The form must be updated and resubmitted every three years. Additionally, if you change your residential address or tax residency details, you'll need to submit a new form.
We're unable to accept W-8BEN forms filed with other brokers.
What are the potential benefits of a W-8BEN tax form?
The W-8BEN form can allow foreign investors to claim concessional tax treaty benefits, including a reduced rate of withholding tax, as per this table:
With a valid W-8BEN form
Without a valid W-8BEN form
0% tax on sale proceeds
30% tax on sale proceeds